Hurricane Sandy Community Development Block Grant Disaster Recovery Grants (CDBG-DR)
The overall CDBG program objective is to develop viable urban communities, by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for persons of low and moderate income. CDBG DR program funds appropriated by P.L. 113-2 are for necessary expenses related to disaster relief, long-term recovery, restoration of infrastructure and housing, and economic revitalization in the most impacted and distressed areas resulting from a major disaster declaration due to Hurricane Sandy and other eligible events in calendar years 2011, 2012, and 2013.
General information about this opportunity
Last Known Status
Agency: Department of Housing and Urban Development
Office: Office of Community Planning and Development
Type(s) of Assistance Offered
Fiscal Year 2014: During FY14, CDBG DR grants were allocated to seven local governments and states impacted by qualifying events occurring in 2013, and additional funds were allocated to the six Hurricane Sandy grantees. Fiscal Year 2015: Through June 10, 2015, thirty four (34) CDBG DR grants totaling $14,181,892,000 have been allocated to local governments and states impacted by Hurricane Sandy and other qualifying events occurring in 2011, 2012, and 2013. Of those funds, HUD has obligated $7,102,372,284 (50% of the allocation) and grantees have drawn $3,852,017.671 (54% of the obligated amount) toward their recovery efforts. Fiscal Year 2016: All appropriated funds have been allocated to eligible grantees. The department will continue making additional obligations to the thirty four eligible grantees and disburse funds for eligible costs as drawn.
Disaster Relief Appropriations Act, 2013 Public Law 113.2, Public Law 113-2.
Who is eligible to apply/benefit from this assistance?
CDBG Disaster Recovery funds are made available to States and units of general local governments designated by the President of the United States as disaster areas. These communities must have significant unmet recovery needs and the capacity to carry out a disaster recovery program (usually these are governments that already receive HOME or Community Development Block Grant allocations). Grantees may use CDBG Disaster Recovery funds for recovery efforts involving housing, economic development, infrastructure and prevention of further damage to affected areas. However, CDBG DR funds may not be used for activities reimbursable by or for which funds are made available by the Federal Emergency Management Agency or the Army Corps of Engineers.
The principal beneficiaries of CDBG DR funds are low- and moderate-income persons (generally defined as a member of a family having an income equal to or less than the Section 8 low income limit established by HUD) in communities that have experienced a disaster event. At least 50 percent of each grantee's CDBG-DR grant award must be used for activities that benefit low- and moderate-income (LMI) persons. These can be either activities in which all or the majority of people who benefit have low or moderate incomes or activities that benefit an area or service group in which at least 51 percent of the populous are of low- and moderate-income. Grantees must meet the 50 percent LMI expenditure requirement unless a waiver has been requested by the grantee and approved by HUD.
Recipients must certify they will meet program requirements and applicable federal requirements. 2 CFR 225, Cost Principles for State, Local, and Indian Tribal Governments (previously OMB Circular A-87) applies to this program. 2 CFR 200, Subpart E - Cost Principles applies to this program.
What is the process for applying and being award this assistance?
As a condition of making any grant under this appropriation, the Secretary is required to certify in advance that grantees have in place proficient financial controls and procurement processes and have established adequate procedures to prevent any duplication of benefits as defined by section 312 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5155), to ensure timely expenditure of funds, to maintain comprehensive websites regarding all disaster recovery activities assisted with these funds, and to detect and prevent waste, fraud, and abuse of funds. An environmental impact assessment is required for this program. This program is excluded from coverage under E.O. 12372.
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. Recipients submit an Action Plan for Disaster Recovery, SF Form 424, and certifications to HUD. In the Action Plan for Disaster Recovery, grantees must describe uses and activities that are authorized under Title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.) (HCD Act) or allowed by a waiver or alternative requirement published in the federal register notice covering the grant funds and also respond to a disaster-related impact. HUD reviews grantee Action Plans within 45 days of receipt and approves the Plan according to criteria identified in the federal register notice covering the grant funds.
P.L. 113-2 provides that funds shall be awarded directly to a State or unit of general local government (UGLG) at the discretion of the Secretary. To comply with statutory direction that funds be used for disaster-related expenses in the most impacted and distressed areas, the Department computed direct allocations to eligible grantees totaling $14,181,892,000 based on the best available data that cover all the eligible affected areas. States and local governments receiving a CDBG DR allocation may carry out programs and/or activities directly or through subrecipients, including local governments, governmental agencies, and non-profit entities. The remaining $999,108,000 appropriated under P.L 113-2 will be awarded to eligible grantees based on a competition. These funds will be allocated under a separate CFDA number (14.272).
Contact the headquarters or regional office, as appropriate, for application deadlines.
Approval/Disapproval Decision Time
After a grantee receives an allocation under a published Federal Register notice, it must submit an initial Action Plan for Disaster Recovery within a time frame specified in the specific applicable Federal Register Notice.
Administrative appeals process followed if grant funds are withheld or reduced, or repayment proposed for non-compliance or non-performance.
How are proposals selected?
How may assistance be used?
Recipients may undertake a wide range of activities directed toward addressing unmet needs of disaster relief, long-term recovery, restoration of infrastructure and housing, and economic revitalization. However, CDBG DR funds may not be used for activities reimbursable by other sources of funds, such as those made available by the Federal Emergency Management Agency, the Army Corps of Engineers, or private insurance. Grantees must conduct an assessment of community impacts and unmet needs to guide the development and prioritization of planned recovery activities and develop their own programs and funding priorities as long as programs/activities conform to the statutory standards and program regulations. Some of the specific activities that can be carried out with Community Development Block Grant Disaster recovery (CDBG DR) funds include buying damaged properties in a flood plain and relocating residents to safer areas; relocation payments for people and businesses displaced by the disaster; debris removal not covered by FEMA; rehabilitation of homes and buildings damaged by the disaster; buying, constructing, or rehabilitating public facilities such as streets, neighborhood centers, and water, sewer and drainage systems; code enforcement; homeownership activities such as down payment assistance, interest rate subsidies and loan guarantees for disaster victims; public services (generally limited to no more than 15 percent of the grant); helping businesses retain or create jobs in disaster impacted areas; and planning and administration costs (limited to no more than 20 percent of the grant). Eligible activities must meet at least one of three program national objectives: benefit persons of low and moderate income, aid in the prevention or elimination of slums or blight, or meet other urgent community development needs because existing conditions pose a serious and immediate threat to the health and welfare of the community where other financial resources are not available. CDBG Disaster Recovery grants primarily benefit low-income residents in and around communities that have experienced a natural disaster. At least 50 percent of each grantee's CDBG-DR grant award must be used for activities that benefit low- and moderate-income (LMI) persons. These can be either activities in which all or the majority of people who benefit have low or moderate incomes or activities that benefit an area or service group in which at least 51 percent of the populous are of low- and moderate-income. Recipients may contract with other local agencies or nonprofit organizations to carry out components of their programs. Grantees must meet the 50 percent LMI expenditure requirement unless a waiver has been requested by the grantee and approved by HUD. Recipients may only carry out eligible activities as listed in 24 CFR 570.201-207 or for which a waiver or alternative requirement has been granted by the Secretary, based upon a determination that good cause exists and that the waiver or alternative requirement is not inconsistent with the overall purposes of Title I of the HCD Act.
What are the requirements after being awarded this opportunity?
HUD requires grantees to enter information in HUD’s Disaster Recovery Grant Reporting (DRGR) system in sufficient detail to permit the Department’s review of grantee performance. No cash reports are required. Each grantee must submit a Quarterly Performance Report (QPR) through the DRGR system not later than 30 days following the end of each calendar quarter. Quarterly reports include information on obligations, expenditures, drawdowns, and accomplishments for all grantee activities. HUD reviews these quarterly reports to assess grantee compliance and performance. The Quarterly Performance Report (QPR), submitted by grantees on a quarterly basis through HUD's Disaster Recovery Grant Reporting (DRGR) system includes information on expenditures for all their activities. The Department performs regular performance monitoring of grantees both remotely and through on-site reviews. The Department determines on-site monitoring priorities based on a risk-analysis of the grantees’ portfolio of activities or known high-risk areas. For all headquarter-held grants under this appropriation, HUD conducts at least two on-site monitoring reviews each year.
The Office of Community Planning and Development’s CPD Notice CPD-12-02, ‘Implementing risk Analysis for Monitoring Community Planning and Development Grant Programs’ describes the Department’s risk analysis process. Monitoring exhibits can be found in Chapter 6 of HUD’s Community Planning and Development (CPD) Grantee Monitoring Handbook.
In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503. The auditee may elect to have a program-specific audit conducted under certain limited circumstances. CDBG DR grantees shall make reviews and audits, including onsite reviews of any subrecipients, designated public agencies, and UGLGs, as may be necessary or appropriate to meet the requirements of 42 U.S.C. 5304(e)(2), as amended, and as modified by the federal notice covering grant funds. Additionally, grantees must have an internal audit function in place for the detection of fraud, waste, and abuse where the responsible audit staff report independently to the chief officer or board of the organization designated to administer the CDBG DR award.
Grantees must maintain records with regard to eligibility, national objectives, financial management, citizen participation, relocation, other resources, acquisition, housing assistance to dwelling units and households, equal opportunity, environmental impact, labor standards and other requirements set forth in the program regulations. Records shall be retained for a period of three years from closeout of the grant, except as otherwise prescribed in the regulations.
Other Assistance Considerations
Formula and Matching Requirements
Statutory Formula: Title 24, Chapter 570. To comply with statutory direction that funds be used for disaster-related expenses in the most impacted and distressed areas, HUD computed allocations based on the best available data that cover all the eligible affected areas. P.L. 113-2 specifies that the CDBG DR funds be used ‘‘for necessary expenses related to disaster relief, long-term recovery, restoration of infrastructure and housing, and economic revitalization in the most impacted and distressed areas resulting from a major disaster’’ and further specifies that the funds are not to be used for activities reimbursable by other available forces of funds such as FEMA, the Corps of Engineers, or private insurance.
For this allocation, similar to prior CDBG DR allocations, the Department makes a determination of unmet needs by estimating unmet needs related to the main intended uses of the funds, including restoration of housing, economic revitalization, and restoration of infrastructure. These estimated needs are then summed together and an allocation is made among the grantee universe based on their proportional share of ‘‘unmet needs.’’.
This program has no matching requirements. This program has no matching requirements.
This program does not have MOE requirements. This program does not have MOE requirements.
Length and Time Phasing of Assistance
To ensure the timely expenditure of funds, section 904(c) under Title IX of P.L. 113-2 that all funds be expended within two years of the date HUD obligates funds to a grantee (funds are obligated to a grantee upon HUD’s signing of the grantee’s CDBG DR grant agreement). Action Plans must demonstrate how funds will be fully expended within two years of obligation. For any funds that the grantee believes will not be expended by the deadline, it must submit a letter to HUD justifying why it is necessary to extend the deadline for a specific portion of funds. Additionally, P.L. 113-2 requires that HUD obligate all funds provided under Chapter 9, Community Development Fund, not later than September 30, 2017. Method of awarding/releasing assistance: by letter of credit.
Who do I contact about this opportunity?
Regional or Local Office
See Regional Agency Offices. None. Contact appropriate HUD Field Office listed in Appendix IV of the Catalog.
Phyllis J. Foulds 451 7th Street SW, Room 7272
, Washington, District of Columbia 20410 Email: firstname.lastname@example.org
Phone: 202-402-3217 Fax: 202-401-2044
(Formula Grants) FY 14 $1,598,360,429; FY 15 est $3,809,603,662; and FY 16 Estimate Not Available - These funds represent obligations to the thirty four (34) currently identified state and local government grantees for disaster recovery from Hurricane Sandy and other federally declared disasters that occurred in 2011, 2012, and 2013.
Range and Average of Financial Assistance
From low of $1,200,000 obligated to the City of Moore, Oklahoma under the 2013 disaster recovery program area to a high of $2,901,736,000 obligated to the State of New Jersey under the Hurricane Sandy recovery program area.
Regulations, Guidelines and Literature
Administrative Regulations for Community Development Block Grants, 24 CFR 570 and the following Federal Register notices:78 FR 14329, 78 FR 23578, 78 FR 46999, 78 FR 69104, 78 FR 17173, 78 FR 32262,78 FR76154, 78 FR 31964, 79 FR 40133, 79 FR 60490, 79 FR 62182, 80 FR 1039, 80 FR 17772, 80 FR 26942.
Examples of Funded Projects